Gogo Inc (GOGO)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 91,383 | 90,586 | 81,237 | 210,126 | 175,842 |
| Payables | US$ in thousands | 16,094 | 13,646 | 17,203 | 11,013 | 5,495 |
| Payables turnover | 5.68 | 6.64 | 4.72 | 19.08 | 32.00 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $91,383K ÷ $16,094K
= 5.68
The payables turnover ratio measures how efficiently a company is managing its accounts payable by analyzing how many times a company pays off its suppliers in a given period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can be a sign of good liquidity management.
In the case of Gogo Inc, the payables turnover has fluctuated over the past five years. In 2019, the payables turnover ratio was exceptionally high at 25.21, indicating that the company paid off its suppliers more than 25 times during that year. This could suggest that Gogo Inc had very efficient accounts payable management in 2019.
However, in the subsequent years, the payables turnover ratio decreased. By 2021, the ratio dropped to 5.94 before showing some improvement in 2022 and 2023. The decrease in the payables turnover ratio could imply that Gogo Inc started taking longer to pay its suppliers, potentially affecting its relationships with vendors.
Overall, Gogo Inc's payables turnover has been variable, and further analysis of the company's financial health and supplier relationships would be needed to fully interpret the implications of these changes in the payables turnover ratio.
Peer comparison
Dec 31, 2023